A Geothermal Heat Pump system is a heating and/or cooling system, which uses the earth as a heating resource in the winter or as a heat sink to put the heat back into the ground in the summer. This is made possible because ground temperatures of a certain depth are stable all year long (around 50-60F).
The idea of using the natural heat of the earth to heat houses without consuming extra energy can be dated back to the time of the Roman Empire, when people started to utilize sources of hot water and steam that exist near the surface of the earth to heat buildings. With the development of technology and the reduction of electricity prices, peole are allowed to use geothermal resources anywhere in the world.
A geothermal heat pump system is also known as "GeoExchange"system and "ground-source heat pump". The system ususally requires a length of buried tubing on the property, a liquid pump back and a water-source heat pump. Common systems include open loop systems and closed loop systems.
Open loop systems:

A demonstration of a open-loop system
Source: EERE. Author: EERE. Permission: Public Resource.Closed loop systems:
A demostration of horizontal closed-loop system
Source: EERE. Author: EERE. Permission: Public Resource.
Closed loop systems are more commonly used in household use. Horizontal systems are more cost-effecitve for residential installations. While, vertical systems are usually used for commercial buildings and schools. The closed loop system circulates the fluid through the loop pipes and exchange heat between the fluid and the earth across the pipe.
Geothermal heat pump systems have many advantages compared to conventional systems in ternms of energy saving, duration and envrionmental influencs. However, heat pumps do have disadvantages such as a higher cost for initial installation.
Compared to conventional systems, geothermal heat pump systems have notable advantages in saving energy, duration, saftey and environmental influence.
The initial cost of installing a geothermal heat pump system is usually two or three times than of a conventional heating system. 7However, some electricity companies offer special rates to customers who install geothermal systems, simply because it helps reduce their peak load.
Geothermal heat pumps save money in operating and maintenance costs. Properly sized and installed GHPs deliver more energy per unit than conventional systems.
The Department of Energy's (DOE) Geothermal Energy Program focuses on energy system research and testing, drilling technologies and geoscience and supporting technologies.
1Geothermal Heat Pumps Can Save You Up To 70 Percent on Utility Bills,altdotenergy.com.
2Geothermal Heating Systems,bobvila.com.
3Canadians still warming up to energy efficiency,centreflow.ca.
4Outside the Loop,A Newsletter for Geothermal Heat Pump Designers and Installers, Spring 1999 - Volume 2, Number 2 - Published Quarterly.
5Greg.R.Wayman,GeoThermal Heat Pumps.
6Geothermal Advantages & Disadvantages ,Geothermal Heat Pumps System.
7How Much Does It Cost,Residential Geothermal.